How does a logistics broker make money on each shipment?

A logistics broker earns the margin between the rate it pays the carrier and the confirmed freight charge it invoices to the shipper. Because brokers consolidate volume across multiple shippers, their contracted carrier rates fall below what individual shippers can negotiate independently — the broker's pricing advantage comes from volume, not from undisclosed additions layered onto confirmed quotes after booking. The shipper pays the confirmed total at booking. The broker pays the carrier its contracted rate. The difference is the broker's gross margin per shipment.

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What Is a Logistics Broker?